Illinois Power Rate Plan

Decatur-based Illinois Power Co. could raise rates 18 percent and the utility`s Clinton nuclear power plant would be declared fully used if state regulators adopt a plan unveiled Friday.

The plan by the Illinois Commerce Commission staff comes eight months after the commission raised rates of Illinois Power, the state`s second largest electric utility, 6.9 percent and found that only about 27 percent of the $4.3 billion Clinton plant necessary to meet demand.

Illinois Power, which had asked for an increase of 30 percent, saw its stock price and securities ratings drop immediately after the March ruling. The company suspended its 66-cent quarterly dividend and said it would eliminate 500 jobs.

The new plan would allow the utility to raise rates $170 million, but the increase would be phased in over as many as eight years. About $124 million of the money would go to place the rest of the 933-megawatt Clinton plant into the company`s rate base, commission spokesman David Farrell said.

Illinois Power spokesman Jim McDonald said the plan ``appears to move in the right direction . . . but falls short of what`s needed.`` The utility asked for a rate increase of $265 million, or 29 percent.